The Association for Private Capital Investment in Latin America (LAVCA) has reported a 25% quarter-on-quarter reduction in venture capital investment in the region for the three months to the end of March this year. It estimated circa-US$800 million of VC investment in the period.
“Notably, venture debt saw the highest investor appetite on a dollar basis, representing 51% [$395 million) of capital invested across seven deals,” LAVCA said.
“Venture debt also led the biggest tickets in the quarter overall, with financings for fintechs Marco Financial [$200m] and Clara [$90m].”
LAVCA reported Latin America VC investment topped $7.8 billion across a record 1114 deals in 2022, including $5.4b (541 transactions) in the first half of the year.
VC was estimated to account for 82% of all LatAm private capital transactions in 2022.
Global VC funding reportedly reached $415.1b in 2022, down 35% year-on-year.